The so-called “Sugar tax” has been spoken about extensively in the media as one of the biggest pieces of health legislation in recent memory. The main reason for the tax is to reduce obesity in the hope that the increased cost will stop people from buying firry drinks, sweets and other products are contained sugar as often, and therefore consuming less sugar.
The World Health Organization has supported countries that have introduced a tax on sweet non-alcoholic beverages. WHO said they would like to see less consumption of so-called free sugars. According to the organization, it will improve the situation with obesity, diabetes and caries. The organization's new report states that the increase in prices of these drinks by 20% or more leads to less consumption and "better nutrition".
The tax is aimed at increasing the consumption of healthy products among consumers and reducing the level of sugar contained in products.
There is the notion of "tax on sin". This is an excise tax imposed separately on certain products that are considered harmful to society. There are some compelling reasons to raise the tax on this tax:
1) the tax is paid only by consumers of "sinful products";
2) the tax is lightly perceived by the population;
3) the tax encourages a healthy lifestyle;
4) can be a significant source of income.
In addition, consumers of "sinful products" create additional costs for society, as the government will have to bear the burden of medical services. In short, the tax on consumers of this type of product is fair.
According to UN studies, in 2011, non-communicable diseases such as heart disease, cancer and diabetes were more widespread than infectious diseases. One in seven people die every 7 seconds because of diabetes in the world. Unfortunately, about 5% of Ukraine's population suffers from diabetes. The number of Ukrainians with diabetes has doubled over the past 10 years and will grow by 5% annually.
Many countries have introduced sugar taxes as a fiscal instrument and an instrument for improving public health. Several countries, such as Mexico and Hungary, are already charging sugar-based products. The experiment in a number of countries was successful: the level of obesity, the incidence of diabetes and caries decreased.
A new sugar tax on the soft drinks industry will be introduced in the UK, the chancellor has announced as he unveiled his Budget. The move has been hailed by campaigners as a significant step in the fight against child obesity.
It is known that in the Western countries (USA, Denmark, Norway) the tax on harmful products had no effect - the buyers did not notice it. But the decline in consumption manifested itself in poor countries like Mexico, where people are very sensitive to price increases. It may happen that excise taxes will strike only those who are sweet and almost do not allow themselves, but all the rest will continue to be pumped up with sugar.
Under the big question, the fairness of the introduction of such measures.
The proceeds from sugar excise taxes will have to go to the development of the production of more useful products, mainly fruits and vegetables. But in Ukraine money from excises usually goes a little, and then they are distributed to completely different purposes.
Over time it will be able to promote the idea of excise taxes on virtually all harmful products. In the queue after the sugar is salt, followed by trans fats and saturated fats. That is supposed to exclude from sale a significant part of the traditional dishes of many peoples of the world: corned beef, marinades, bacon and many other things.
I believe that with the help of the tax, as a result, it will be possible to attract significant funds to the Ukrainian budget, about 2.5 billion UAH, taking into account that consumption will be reduced by 20%. Consumption of confectionery and effervescent beverages can be just as harmful to health, due to the consumption of tobacco and alcohol products. The tax on high-sugar foods can reduce the incidence of diabetes and other diseases, thus improving the health of the population and protecting it from "sweet death." Income from this tax can be used for the needs of health and sports in Ukraine.
References:
1. Official website of the State Statistics Service of Ukraine. URL: www.ukrstat.gov.ua.
2. Kolodko G. (2002). Globalіzatsіya i perspective rozvitku postsotsіalіstichnih krayn [Globalization and prospects of post-socialist countries]. Kyiv: Suchasna Dumka, p. 248 [in Ukrainian].
____________________________
Supervisor: T. P. Pernarivska, University of State Fiscal Service of Ukraine (Irpin)
|